Applying for Life Insurance? Exam Or No Exam?
The landscape has changed a lot over the last two years when it comes to applying for life insurance without an exam. The quandary for life insurance companies has been that with no exam to provide things like current height and weight, blood pressure and blood and urinalysis results they were at risk of adverse selection. Up until a few years ago companies defended themselves by limiting how much life insurance a person could get on a non medical basis. They also priced their no exam products at a higher rate than a normal healthy person might qualify for.
Companies would also routinely check the medical information bureau (MIB). If someone had applied for life insurance and didn’t get the rate they wanted due to adverse medical information, that information would show up in a MIB report. This prevented people from applying with a different company and just not mentioning the medical information that caused the first application problems. Even though there was no exam, at their discretion companies could also request medical records. There were ways for insurance companies to protect themselves from applicants not wanting an exam because they had something to hide.
Life Insurance Without An Exam Now
Within the last few years several insurance companies have started to offer higher amounts (up to $2.5 million) without an exam and also offering rates that are competitive with the best rates available with a full exam. On the surface it would appear they had opened themselves up to the adverse selection they were guarding against before. So, what changed? Have you noticed the uptick (tsunami) in how much technology has invaded your personal information? Have you run into LexisNexis yet asking you which car you bought in 2010? Suffice it to say that insurance companies now feel they can access enough relevant information about you to decide if you qualify for a large amount of life insurance without the need for an exam.
If you are healthy and there are no skeletons in the technology closet you can apply for life insurance without an exam and often within a day. We have a lot of experience in this arena. Give Hinerman Group a call and let’s see if it’s right for you.